Why Should You Do A Will?

If you die without a will…

The distribution of your estate will be to your next of kin as set out in the Wills, Estate and Succession Act. No assets can be diverted to charities, friends or other relatives.

Normally all assets must be converted to cash (i.e. family heirlooms may be sold and the proceeds distributed rather than passing on to your family).

A common law spouse is a spouse under the Wills, Estate and Succession Act, so if there is also a married spouse, there will be an application to the Court to determine the split of the spousal share of the estate.

If you have minor children, their share of your estate must be paid to the Public Guardian and Trustee (PGT) and will remain there until they turn 19. Requests can be made for funds prior to the child turning 19, but the payment is in the discretion of the PGT.

You will not have the opportunity to choose guardians for your infant children.

The administrator of your estate may not be who you would have wanted to do the job; Anyone can apply to become the administrator of your estate, but preference goes to next of kin (spouse, children, parents). If no one comes forward, the Official Administrator for British Columbia will perform the task and that may take much longer due to the number of estates they administer.

The appointment of an administrator must be made by Court Order and this increases the cost and delays the appointment. Unlike an executor named in a Will, an administrator may only start dealing with your estate when appointed by the Court.

The administrator of your estate may have to post a bond to protect the assets of your estate which is an added cost to the estate. If the applicant is not bondable, another person or the Official Administrator will have to apply for administration.

You have lost the opportunity to take advantage of tax and estate planning tools. A surviving spouse has the right to buy the matrimonial home, but court applications may be necessary if the spouse cannot afford it or if there is a dispute over the value.

If you obtain legal advice regarding your estate, all of the above concerns can be addressed.